Considerations When Using Collateral for Summit County Bail Bonds

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Considerations When Using Collateral for Summit County Bail Bonds

considerations collateral bail bonds

While cash is typically the preferred method of payment to any bail bond agency for assistance with bail, there are many situations where this won’t be possible for those who have been detained or their families. Many bail bond agencies will accept different forms of compensation in some cases, and the general term for this entire realm is known broadly as collateral.

At Beehive Bail Bonds, we’re happy to provide 24/7 bail bond services to clients in Summit County and many other parts of Utah, assisting with many areas, including financial ones. If you’re attempting to secure bail bond for a friend or loved one using collateral rather than cash, how much collateral will be necessary? The answer here depends on several factors, which we’ll go over below.

Bail Amount

Naturally, the first and most important factor here will be the bail amount that has been set. If the bail is $500, you’re going to need a lot less collateral than if it were $5000. The amount of collateral that will be necessary will be dependent on the size of the bail, as this will give us an idea of how much risk we’re taking on.

While this will vary from agency to agency, there may be some cases where extremely large bail amounts won’t allow for collateral to be used. Some agencies don’t want to risk having too much of their money tied up in collateral, and so may not be willing to provide bail bond services for those with very high bail amounts.

This will also tie into the next factor to consider.

The Type of Property Used as Collateral

Not all property is created equal in the eyes of the law, and so some types of property will be seen as being more valuable than others when it comes to bail collateral. And while some of the differentiators here will be relatively obvious (a diamond ring is worth more than a Ring Pop, as an extreme example), others may not be as apparent.

For instance, property that is considered to be liquid will typically be seen as being more valuable than property that isn’t. This means that things like cash, stocks, and bonds will all be seen as being more valuable types of collateral than, say, a car or a house. The reason for this is simple – it’s much easier to turn these liquid assets into cash if necessary than it is with more illiquid assets.

The reason that this matters is because the value of the collateral will play a role in how much of it will be necessary. The more valuable the collateral, the less of it that will be needed to cover the bail amount.

Agreeing on Value

For certain forms of liquid assets, such as stocks or bonds, agreeing on the basic value of the collateral may not be all that difficult. However, for other types of assets, such as jewelry, this can be a bit more challenging.

This is one of the most important areas where working with a professional bail bond agency can be beneficial. We have years of experience dealing with different types of collateral, and so will be able to help you determine an appropriate value for your particular piece of collateral.

On the flip side, less reputable and honest bail bond agencies might try to take advantage of you by lowballing the value of your collateral, requiring more of it than necessary. This is why it’s so important to work with a bail bond agency that you can trust, such as Beehive Bail Bonds.

The Risks Involved

As we alluded to above, using collateral rather than cash to secure bail bond comes with some additional risks – both for the bail bond agency and for you, the cosigner.

For the bail bond agency, the biggest risk is that the value of the collateral may drop significantly between the time that it’s posted and when the case is resolved. This is why liquid assets are typically seen as being more valuable, as they can be quickly turned into cash if necessary. There is also the risk that the collateral may be lost or stolen. This is why certain types of property, such as cars, may not be seen as being as valuable as others.

For you, the cosigner, the biggest risk is that you could be left holding the bag if the defendant fails to show up for their court date. If this happens, you’ll be responsible for paying the full bail amount, as well as any additional fees and penalties that may have been accrued.

This is why it’s so important to make sure that you fully understand all of the risks involved before agreeing to use collateral for bail.

The Agency

Finally, as we noted above, some of this will simply come down to the agency you’re working with. While most larger and established bail bond agencies will typically accept many forms of collateral, some smaller and less reputable ones may not.

Likewise, some bail bond agencies will be more flexible than others when it comes to the value of the collateral. This is why it’s so important to do your research and choose a bail bond agency that you can trust.

To learn more about the role of collateral in some bail bond situations, or for information on any of our bail bond agents or services to clients in and around Summit County, speak to the team at Beehive Bail Bonds today.